ANALYSIS OF EFFECT OF INVESTMENT DECISIONS, DECISIONS OF FUNDING, DIVIDEND POLICY AND INSTITUTIONAL OWNERSHIP OF AUTOMOTIVE SECTOR COMPANY VALUE PERIOD 2007-2012

Abstract

The main objective of the company is to increase the value of the company. High corporate value can increase prosperity for our shareholders, so the shareholders will invest capital to the company. The value of the company is very important for the company because the company's value indicates how well the company's performance.

The value of the company can be influenced by investment decisions, financing decisions, dividend policy and institutional ownership. The purpose of this study was to analyze the influence investment decisions, financing decisions, dividend policy and institutional ownership on firm value automotive sector companies listed on the Stock Exchange for 2007-2012.

This study uses the investment decisions, financing decisions, dividend policy and institutional ownership as an independent variable and the value of the company as the dependent variable. The sampling technique is purposive sampling. The sample used is the automotive sector companies listed on the Stock Exchange which publishes an annual report during the observation period (2007-2012). The analysis is the method of quantitative analysis, including descriptive statistical analysis, the classical assumption test, multiple linear regression, and analysis of the goodness of the model.

Based on test results, it is evident that partial, investment decisions, financing decisions and dividend policy has positive effect on firm value, while institutional ownership does not affect the value of the company. Based on the F-test were performed and the results of multiple linear regression analysis above it can be seen that the regression model can be used to predict the value of the company. The magnitude of the coefficient of determination shown by the Adjusted R Square value that is equal to 0.389, which means the value of the company can be explained by the independent variables of 38.9%.

Keywords: the value of the company, investment decisions, financing decisions, dividend policy and institutional ownership